- US Dollar Index pushes lower below 97.
- Wall Street looks to start the day in the positive territory.
- The UoM Consumer Sentiment Index will be the next catalyst.
After spending the majority of the day moving sideways in a very tight range near 1.0030, the USD/CHF pair came under a renewed selling pressure and tested the critical parity mark in the last minutes. As of writing, the pair is down 0.27% on a daily basis at 1.0002.
The broad-based selling pressure surrounding the greenback seems to be causing the pair to retrace this week’s gains on Friday. Despite yesterday’s strong upsurge, the US Dollar Index, which tracks the dollar’s value against a basket of six major currencies, turned south today and was last down 0.35% on the day at 96.82.
Although there were no clear catalysts that could have caused a USD sell-off today, investors seem to be more interested in risk-sensitive assets such as stocks. At the moment, Germany’s DAX is up 0.65% on the day while the UK’s FTSE 100 is adding 0.3%. Furthermore, the S&P 500 Futures is rising 0.5%, suggesting that Wall Street is likely to start the day in the positive territory.
However, the risk-on mood is also likely to hurt the demand for the CHF and keep the pair’s losses limited. Later in the session, the UoM’s Consumer Sentiment Index from the U.S. will be looked upon for fresh impetus.
Technical levels
Share
